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### Viewing cable 10BUENOSAIRES109, Argentina: Codel Engel Addresses Bilateral Relations

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
10BUENOSAIRES109 | 2010-02-24 22:10 | 2011-03-13 07:07 | CONFIDENTIAL | Embassy Buenos Aires
Appears in these articles: http://www.lanacion.com.ar/1356989-la-presidenta-queria-una-relacion-mas-estrecha-con-estados-unidos

`

    VZCZCXYZ0013
    OO RUEHWEB

    DE RUEHBU #0109/01 0552249
    ZNY CCCCC ZZH
    O R 242249Z FEB 10
    FM AMEMBASSY BUENOS AIRES
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 0632
    INFO MERCOSUR COLLECTIVE
    RUEHBO/AMEMBASSY BOGOTA
    RUEHZP/AMEMBASSY PANAMA

` `

    C O N F I D E N T I A L BUENOS AIRES 000109

    CODEL
    SIPDIS

    E.O. 12958: DECL: 2035/02/24
    TAGS: OREP ECON ELAB PGOV PREL AR
    SUBJECT: Argentina: Codel Engel Addresses Bilateral Relations

    CLASSIFIED BY: Alex Featherstone, Political Counselor; REASON:
    1.4(B), (D)

    ¶1.  (SBU) Summary: Codel Engel enjoyed a very productive visit to
    Buenos Aires, January 5-7.  The Codel was led by Eliot Engel (D-NY)
    and included Shelly Berkley (D-NV), Pedro Pierluisi (D-PR) and Lynn
    Woolsey (D-CA).  President Cristina Fernandez de Kirchner (CFK) met
    with the Codel for two hours and shared her views on bilateral and
    hemispheric relations, the Middle East, and Iran among other
    matters.  Foreign Minister Jorge Taiana stressed the GoA's desire
    to work with the USG on a broad range of global and regional
    issues.  Buenos Aires Mayor and Presidential contender Mauricio
    Macri offered the Codel his views on the Argentine economy,
    strengthening bilateral ties and the rule of law.  The Codel paid a
    historic visit to the headquarters of Argentina's powerful trade
    union confederation, the CGT.  End Summary

    Meeting with President CFK
    ----------------------------------

    ¶2.  (C) Chairman Engel opened the meeting saying he was here to see
    his good friend, the President, and to continue strengthening the
    bilateral relationship, adding that, upon his return to Washington,
    he will urge that Secretary Clinton and President Obama meet with
    CFK.   CFK thanked Engel and agreed that such meetings would do
    much to strengthen U.S.-Argentine relations.  She noted that
    Argentina and she personally had looked forward to an Obama
    Presidency that, for the moment, has not met expectations, citing
    differences between Argentina and the U.S. over Honduras, U.S.
    military presence in Colombia, and the Israeli-Arab conflict
    (noting her recent meetings with Israeli President Peres and
    Palestinian President Abbas).  CFK said that, despite policy
    differences with former President Bush, her husband and then
    President Nestor Kirchner had met with Bush a month after
    Kirchner's election and that she and her husband had enjoyed an
    excellent relationship with former WHA A/S Shannon.  In contrast,
    she said that Obama has met with many other South American leaders
    but not her and that the new WHA A/S Valenzuela expressed criticism
    toward the government during his first visit to Argentina last
    month.  ""I can't ignore this,"" she added.

    ¶3.  (C) Engel responded that he mentioned his support for a POTUS
    meeting because it is important for the bilateral relationship and
    the need to put everything out on the table for review.  As
    Americans and Democrats he and the other members here also have
    high hopes for the Obama Presidency.  At the moment, the health
    care legislation has been dominating the national agenda, delaying
    greater focus on employment creation, climate change, and foreign
    policy priorities.  Engel added that President Obama will be in ""a
    good place soon"" to refocus.  He said that he had spoken to
    Valenzuela before coming to Argentina regarding the flap over his
    comments, and it is clear that the comments were taken out of
    context by press reports. Engel added that Valenzuela shares our
    goal of good relations, and ""I will work hard to get us there.""
    Engel said that he is stressing in all of his private and public
    interactions here that U.S. and Argentina share many common
    interests - much more than what divides us, and we need to put
    aside our minor differences and misunderstandings to work together
    on our broad common agenda.

    ¶4.  (C) Engel thanked CFK for Argentina's vote in the IAEA
    vis-a-vis Iran, noting Brazil's disappointing abstention on the
    latest vote.  On Honduras, he said that the U.S. also shares
    Argentina's concern about the dangerous precedent set by the coup.
    Engel said that Zelaya should have been reinstated before
    elections, but, failing that, we now have an opportunity to use the
    elections as a way out of the crisis and for he benefit of the
    Honduran people.  Regarding the Arab-Israeli conflict, Engel said
    that we all want the same thing, i.e., an Israeli-Jewish state and
    a Palestinian-Arab state living side-by-side, but the history of
    negotiations has thus far been Israel offering concessions that
    would achieve this result that are then ultimately rejected by the
    Palestinians, first Arafat and now Abbas.  Congresswoman Berkley
    thanked CFK for her strong stand against anti-semitism in Venezuela
    and elsewhere, but expressed disappointment that Argentina voted
    for rather than abstaining on the Goldstone Report, which was
    terribly biased against Israel.  She added that all four members of
    the delegation would encourage a POTUS meeting with CFK.

    ¶5.  (C) CFK said it is hard to understand why Brazilian President
    Lula was given a meeting with President Obama - despite Brazil's
    negative IAEA vote and Lula's meeting with Ahmadinejad, while she

    is refused after Argentina's strong stand against Iran in the IAEA
    and counter-terrorism.  On Honduras, CFK said that, not all, but
    most UNISUR members see recognition of the new government as
    impossible as long as no one involved in the coup is punished,
    adding that ""for many of us"" a military coup ""is too close to
    home.""  On Arab-Israeli peace, CFK said that the U.S, with its
    great weight in the region, must convince Israel to tone down its
    response to provocations and to work for a comprehensive settlement
    that includes a border on the Golan Heights.  The same is true with
    counter-terrorism, she added.  Violent retaliation only fuels
    terrorist recruits and more terrorism.  Greater efforts must be
    made to solve the Arab-Israeli and other underlying conflicts, as
    well as establishing greater intelligence and logistics
    capabilities.    On Goldstone, CFK said that, while not perfect and
    Argentina does not support all of the recommendations, the Report's
    thrust that there must be an improvement in living conditions in
    Gaza is right.  She noted that Hamas's violent activities, although
    wrong, cannot be equated to state-sponsored violence, which
    Argentines suffered during the Dirty War.  She added that no state
    has prosecuted terror activity more aggressively than Argentina.

    ¶6.  (C) Engel said that the U.S. was also concerned about growing
    Iranian activity in South America, especially growing evidence that
    Chavez is providing Iran with logistical and political support to
    conduct terrorist activities.  Engel added that the U.S. is puzzled
    by Argentina's and others' concerns over the latest U.S.-Colombian
    agreement that merely codifies long-standing cooperation on
    combating narco-terrorism.

    ¶7.  (C) CFK responded that Argentina's counter-terrorism concerns
    do not involve Venezuela, but the tri-border area where
    US-Argentine cooperation is strong.  She said that, as you are
    aware, Chavez is a friend, and ""I can assure you he is neither
    anti-semitic nor a supporter of terrorism.  She added that his ties
    with Iran are related to ""international politics.""  With respect to
    the U.S.-Colombian agreement, CFK said that a clear UNASUR
    understanding and agreement is key to regional peace.  In
    Bariloche, the terms of the agreement were never clear, and to many
    of us it still appears that aspects of the agreement (such as a
    landing strip suitable only for large aircraft) are still more
    suitable for a conventional war than counter-narcotics.  CKF added
    that there has been a great deal of criticism against Chavez for
    thwarting democracy by overstaying in power but none against Uribe
    for doing the same - there must be equal treatment of all.

    ¶8.  (C) CFK concluded by saying that, as President and a Peronist,
    she wanted to thank the U.S. delegation for being the first
    official U.S. visitors to meet and lunch with the Argentine Labor
    Confederation.  It was an important gesture and precedent.  Engel
    said he agreed and promised to return to Argentina as soon as he
    can.

    At the MFA
    -------------

    ¶9.  (C) Prior to their meeting with CFK Codel Engel called on
    Foreign Minister Jorge Taiana, who warmly welcomed the Codel and
    Ambassador Martinez and opened the meeting by highlighting the
    deeply positive aspects of the bilateral relationship, emphasizing
    common values and principles, citing democracy, freedom, human
    rights and security as areas of cooperation.  Chairman Engel noted
    that he viewed the United States and Argentina as natural friends
    and allies and that he hoped to enhance the relationship.

    Economic Outlook
    ----------------------

    ¶10.  (C) Taiana said that 2009 had been a test of the strength of
    world economies and observed that, all things considered, Argentina
    had weathered the storm relatively well.  He also noted that, for
    Argentina, the economic downturn had followed an unprecedented six
    years of robust growth, a period, Taiana observed, unprecedented in
    Argentina's last 40 years of history.  He confidently predicted
    that 2010 will be a good year for Argentina economically and the
    country is now well positioned to enjoy a sustained period of
    expansion.  He observed that Argentina finds itself now in the same
    position it enjoyed 100 years ago, i.e., commodity prices are high
    and industrial imports are relatively cheap.  The country has vast
    natural resources, superior human capital in its well-educated work

    force and enjoys excellent productivity.

    Hemispheric Agenda
    ------------------------

    ¶11.  (C) Taiana also addressed what he believes to be the
    appropriate roles for Argentina and the United States to play in
    the hemisphere.  He stated that the U.S. should generally refrain
    from interfering in purely regional matters and should address its
    neighbors with a positive agenda. Alleviation of poverty is one
    area, in addition to those already noted, where the U.S. could play
    an enhanced positive role.

    ¶12.  (C) He specifically objected to the Defense Cooperation
    Agreement with Colombia to formalize the status of the U.S.
    military forces assisting in counter-narcotics operations.  Taiana
    understands why a country such as Brazil feels threatened having
    outside troops based so close to a sensitive region, the Amazon,
    where local stewardship of natural resources is routinely a point
    of international criticism.  Engel pointed out that the agreement
    is not changing the relationship that the U.S. Military has with
    Colombia, it is only codifying the facts on the ground.  The
    agreement does not add a single American soldier to the forces
    already present in the country.  Taiana responded that it is fair
    to draw a distinction between operations and permanent bases.

    ¶13.  (C) Taiana stated that the defense of the region should be
    conducted without the interference of outside forces.  He noted
    that relations within South America are now very positive; Mercosur
    is expanding, and relations between Argentina and Chile have
    improved to the point that they are jointly fielding a battalion of
    UN peacekeepers.

    ¶14.  (C) The issue of actions that countries in the hemisphere took
    in response to the coup in Honduras ousting President Manuel Zelaya
    was a second point of disagreement.  While Taiana noted that this
    matter is now in the past, it has not been forgotten, and he
    criticized U.S. actions in accepting the results of a tainted
    election rather than backing Argentina's call for a restoration of
    Zelaya.  Chairman Engel responded by noting that he had
    participated in the Organization of American States meeting in
    Honduras and the last picture taken with his camera was of him
    standing alongside Zelaya.  He indicated that the Arias decision to
    proceed with the previously scheduled election was sound since it
    offered the only practical way out of the crisis. The bottom line
    for the Chairman, is that this is an issue that should be put
    behind us and kept in perspective.

    Iran Vote
    -----------

    ¶15.  (C) As a coda to the friendly and largely positive meeting,
    Chairman Engel thanked Taiana for Argentina's vote against Iran at
    the International Atomic Energy Agency.  He noted that in contrast
    to Brazil, Argentina had taken an unequivocal stand against the
    development of nuclear weapons by the world's leading state sponsor
    of international terrorism.

    Mayor and Presidential Candidate
    ----------------------------------------

    ¶16.  (SBU) Ambassador Martinez and Codel Engel met with Buenos
    Aires City Mayor Mauricio Macri, who was accompanied by Buenos
    Aires City Minister of Justice and Security Guillermo Montenegro,
    the Chief of the City's newly-formed Metropolitan Police, former
    national deputy Eugenio Burzaco, and the Director General of
    International Relations Fulvio Pompeo. Macri and City officials
    were welcoming and expressed interest in closer collaboration with
    the USG, particularly in the area of legal training.

    On the Argentine Economy
    --------------------------------

    ¶17.  (C) Congressman Engel solicited Mayor Macri's views on the
    economy, Argentina's debt, and the breaking reports indicating CFK
    had asked for Central Bank Governor Martin Redrado's resignation.
    Macri said he agreed with the Central Bank's position, describing
    the situation as ""completely unnecessary"" and ""not good"" because it
    creates new problems while shifting global attention again to
    weakness in Argentina's economic management.  He said Redrado's
    resignation or replacement should be handled by Congress, not by
    the executive branch.  Macri concluded that the situation further
    weakens Argentina's ability to attract foreign investment, which is
    already undermined by weak institutions and a lack of clear ground
    rules. Security Minister Montenegro added that another deterrent to

    foreign investment is the perception of a growing drug trafficking
    problem in Argentina.

    ¶18.  (C) Congressman Pierluisi asked Macri for his views on
    resolving the Paris Club debt.  Macri responded that it is ""very
    important"" for Argentina to pay back its debt, but that the key
    issue is how Argentina will finance it. He said that while he is an
    engineer and not an economist, ""economics 101"" dictates that a
    country should pay its debt with its surplus not its reserves.

    Strengthening U.S.-Argentine Relations
    --------------------------------------------- --

    ¶19.  (C) In responding to Chairman Engel's question on
    U.S.-Argentine relations, Macri said he understands that the U.S.
    has other foreign priorities and, given Argentina's lackluster
    performance in recent years, he does not expect the relationship to
    be one of equal partners.  The Mayor underscored the importance of
    bilateral cooperation in narcotrafficking and terrorism.  He added
    that Argentina is in a weaker state than in 1994 when the Argentine
    Jewish Mutual Association (AMIA) was bombed.  Noting that President
    Obama is looking for partnerships based on equal participation, the
    Ambassador asked Macri for suggestions of other areas where the two
    countries could work together toward achieving common goals.  The
    Mayor said that continued cooperation on narcotrafficking and
    terrorism would help bring the two countries closer together.
    Metropolitan Police Chief Burzaco said human trafficking should
    also be top on the bilateral agenda.

    Cooperation on Rule of Law
    ---------------------------------

    ¶20.  (C) Security Minister Montenegro praised U.S. legal training
    and judicial exchanges for having aided Argentina in strengthening
    its judicial system, and expressed interest in increasing such
    programs. Montenegro said the training of judges is critical,
    noting that ""politics and economics"" are controlling the judicial
    branch and undermining its independence.  Metropolitan Police Chief
    Burzaco said that City officials are working to portray a City that
    abides by the rule of law, and that they want to show the world
    ""another face of Argentina,"" but that it will take some time for
    this new Argentina to rise to the national level.

    On Hugo Chavez's Regional Activity
    --------------------------------------------

    ¶21.  (C)   Noting USG concern over terrorism, Congressman Engel
    asked the Mayor if he agreed with U.S. perceptions that the
    Venezuelans are giving the Iranians a foothold in the region.
    Macri said he agreed and added that nothing surprises him when it
    comes to Venezuelan President Hugo Chavez. He claimed that the
    Kirchners had given free rein to Chavez to operate in Argentina as
    if he were in Venezuela.

    Building Bridges with Argentine Labor
    --------------------------------------------- ----

    ¶22.  (SBU) The Codel paid an unprecedented visit on the General
    Confederation of Labor (CGT) Argentina's largest national labor
    organization at the invitation of powerful CGT Secretary General
    Hugo Moyano. In his welcoming remarks, Moyano sharply criticized
    neoliberal economics, claiming that they led to Argentina's 2001
    peso crisis and the degradation of labor standards. Moyano also
    characterized Assistant Secretary Valenzuela's comments reflecting
    business concerns with rule of law and the investment climate
    (reftel -BuenosAires1311) as mis-informed, stating that the true
    period of social instability was the 1990s when the Menem
    Adminsitration's privatization and exchange rate policies
    undermined, he claimed, workers' rights. He also attacked the
    Argentine Central Bank leadership's delay on transferring US $ 6.6
    billion in reserves to meet debt payments coming due in 2010 while
    the Obama Administration, he claimed, had recently used reserves to
    prevent an economic meltdown in the United States.

    ¶23.  (SBU) Congressman Engel disarmed Moyano by referring to
    childhood memories of walking picket lines with his father - a
    metalworker union member at the time. Engel expressed his support
    for labor movements worldwide in their efforts to ensure social
    justice, and quipped that statistics of his voting record in favor
    of pro-labor legislation 98% of the time must be incorrect - that
    he believes his record to be 100% in favor of labor. The Chairman
    expressed his desire to improve already strong U.S.-Argentine
    relations, building on an already solid foundation of friendship,
    and in the process help build a bridge for future Embassy-CGT
    interaction.

    ¶24.  (SBU) Chairman Engel then turned to Representative Woolsey, as
    Co-Chair of the Congressional Progressive Caucus and Chairwoman of
    the Subcommittee on Workforce Protections of the House Committee on
    Education and Labor, who stressed the mutually-strong dedication of
    both countries to labor protections and standards. Woolsey
    encouraged future cooperation in improving labor welfare standards
    and protecting the workers that are the backbone of infrastructure
    and the engine of economic growth. Woolsey expressed her
    appreciation for the CGT's invitation, and in recognizing the
    importance of the ""historic"" moment, asked ""What took us so long?""

    ¶25.  (SBU) Following the remarks, several interesting
    side-conversations ensued. Representatives Woolsey and Pierluisi
    discussed with CGT leaders societal concerns ranging from
    healthcare to drug use. In Argentina, unions run provide healthcare
    to members, often running some of the largest hospitals in the
    country. Medical coverage costs roughly 8% of union members'
    salaries, but as a result, all costs are covered without co-payment
    requirements. The Congressmembers were also surprised to learn
    that, according to CGT leaders, narcotics concerns have shifted
    from being a transshipment point to one of production and
    consumption - with increasing consumption of ""paco"" ( low-quality
    residual substance resulting from the manufacture of cocaine) which
    can be found on the streets for as little as 1 peso (roughly 30
    cents). After the delegation departed from the CGT headquarters,
    union leadership expressed gratitude to Embassy's labor officer for
    the historic visit as well as a desire to strengthen and deepen
    their collective and individual unions' relationship with the
    Embassy.

    Ceremony of Remembrance at AMIA
    ------------------------------------------

    ¶26.  (SBU) The Codel also visited the Argentine Jewish Mutual
    Association (AMIA) to pay its respects to the victims of the 1992
    Israeli Embassy bombing and 1994 AMIA community center bombing.  In
    addition to laying a wreath at the memorials to the victims of the
    two events, the Codel met with the president of AMIA and DAIA
    (another Argentine Jewish organization) and the parents of the one
    of the victims of the AMIA bombing.  The visit garnered strong
    positive press coverage.

    Press Coverage
    ------------------

    ¶27.  (SBU) While Codel Engel's visit was overshadowed by two other
    big Argentine stories - the death of popular music idol Sandro (the
    ""Argentine Elvis"") and the President's attempt to both transfer
    Central Bank funds to the Argentine national treasury and fire the
    Central Bank President (reftel: Buenos Aires 13)  - media coverage
    of the visit was uniformly positive. All major print media covered
    the visit, giving special emphasis to the ""historic"" meeting at the
    CGT headquarters. The delegation's visit to AMIA and meeting with
    CFK also received prominent coverage. The more pro-GoA news
    outlets, such as daily Pagina 12, called the visit in part an
    attempt to ""minimize"" the remarks of Assistant Secretary Arturo
    Valenzuela during a trip two weeks earlier, when he noted in a
    press conference that U.S. business representatives had expressed
    concern about ""judicial insecurity"" in the country. Other news
    outlets, such as daily-of-record La Nacion and state-run news
    agency TELAM, noted that the visit was meant to ""deepen"" already
    ""excellent"" bilateral ties. In a media environment in which the
    smallest phrase can be taken as a signal from the USG and blown out
    of proportion, Chairman Engel's ability to stay on message and,
    regardless of the question, continuously repeat the purpose of the
    visit ( to strengthen strong bilateral ties) was critical to the
    positive media coverage the Codel received.

    ¶28.  (C) Comment: This was a highly successful visit with valuable
    positive engagement between U.S. Representatives and the GoA and
    Argentine people at a number of levels.  The President's two-hour
    meeting with the Codel helped put to rest the media-fueled
    impression that U.S.-Argentine relations were on the rocks.  Taking
    two hours out of her schedule while in the middle of a showdown
    with the Central Bank, the President demonstrated that she was
    willing to spend time with us and committed to strengthening
    bilateral relations.
    MARTINEZ

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